BTC/USD 1-month Chart
Image: BTC/USD 1-month chart from TradingView
The cryptocurrency market is witnessing a new wave of price volatility, with Bitcoin (BTC) experiencing an 8% surge in value following the US presidential election. This sudden increase has sparked renewed interest in the cryptocurrency’s price discovery phase.
Bitcoin Bull Market Support Levels in Focus
According to data from Cointelegraph Markets Pro and TradingView, a new Bitcoin record of $75,397 on Binance has been set. As the price continues to fluctuate, market commentators are now focusing on key support levels that bulls need to protect.
For Checkmate, the pseudonymous analyst who is the founder of statistics resource Checkonchain, key bull market trend lines are still in play after recent weeks’ recovery. However, this may pose a challenge for Bitcoin bulls should sell-side pressure return to the market.
BTC/USD Chart with Trend Lines
Image: BTC/USD chart with trend lines from Checkmate/X
Some key levels to watch include:
- 200-day Simple Moving Average (SMA): This classic bull market support component stands at $63,546 as of the writing on November 6.
- Short-term Holder Cost Basis (STH-CB): Similarly, this metric also shows a value of $64,337.
Bitcoin STH-CB Chart
Image: Bitcoin STH-CB chart from Checkonchain
Looking closer to home, order book liquidity data from CoinGlass indicates that the bulk of asks are clustered around $75,500 as price tests uncharted territory. Conversely, buyer interest is visible at $73,000, with bids laddered down to the $70,000 mark.
BTC Liquidation Heatmap (Screenshot)
Image: BTC liquidation heatmap from CoinGlass
Referring to the rapid BTC price upside, Keith Alan, co-founder of trading resource Material Indicators, expressed skepticism. "Degens are degening," he said while examining order book data.
Post-Election Price Volatility
Earlier, Cointelegraph reported on expectations that election-based price fervor may soon dissipate after hundreds of millions of dollars of crypto liquidations. This has led to predictions of a potential post-election "dump and pump" scenario.
A Post-Election BTC Price ‘Dump and Pump?’
Image: BTC/USD perpetual swap chart from Lucky Chart Ape/X
According to analytics account Lucky Chart Ape on X, which uploaded a forecast of what it called a "dump and pump scenario" after the vote count. Thereafter, BTC/USD should recover toward $70,000.
Material Indicators also posted that "the fact that the volatility we’ve seen this week is extending in both directions is an indication that the election-related narratives are getting obliterated today."
Important Note
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
In conclusion, the current price volatility surrounding Bitcoin’s election-related narrative highlights the importance of understanding market sentiment and trends. As the cryptocurrency continues to navigate its price discovery phase, it is crucial for investors to stay informed and adapt to changing market conditions.
Key Takeaways:
- The recent 8% BTC price gain is a result of election-based price fervor.
- Key support levels that bulls need to protect include the 200-day SMA and STH-CB.
- Order book liquidity data from CoinGlass indicates clustering around $75,500 as price tests uncharted territory.
- Buyer interest is visible at $73,000, with bids laddered down to the $70,000 mark.
- A potential post-election "dump and pump" scenario has been predicted by analysts.
Recommended Reading:
- Bitcoin Hits New $75K High as Trump Takes Early Election Lead
- Expecting a Post-Election Price Dump? Here’s What to Watch Out For
This article aims to provide readers with a comprehensive understanding of the current market situation and potential price movements. However, it is essential for investors to conduct their own research and make informed decisions based on their individual circumstances.
Investments in cryptocurrency carry inherent risks, including but not limited to price volatility, regulatory changes, and security concerns. As such, it is crucial to exercise caution and carefully evaluate the potential consequences before making any investment or trading decision.
Disclaimer:
This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. The content provided in this article is for informational purposes only and should not be considered as professional advice.